Cosmo Energy Holdings Co., Ltd.
5021・Prime Market・Oil & Coal Products
Petroleum Business
The largest segment underpinning Cosmo Group's earnings base, operating an integrated value chain from crude oil import and refining to sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales (Total including Intra-segment) | ¥2,385,565 million | ¥2,506,857 million | ↓ |
| Sales to External Customers | ¥2,298,768 million | ¥2,417,033 million | ↓ |
| Segment Profit | ¥76,262 million | ¥61,807 million | ↑ |
| Segment Profit Excluding Inventory Valuation Impact | ¥92,800 million | ¥92,600 million | — |
| Segment Assets | ¥1,595,312 million | ¥1,601,943 million | ↓ |
| Depreciation | ¥30,498 million | ¥29,134 million | ↑ |
| Capital Expenditures | ¥47,530 million | ¥46,709 million | ↑ |
Business Details
Centered on Cosmo Oil Co., Ltd., the segment procures crude oil from oil-producing countries and trading companies, refines it at domestic refineries, and sells fuel oil, lubricants, LPG, and other products to affiliated distributors and major customers through Cosmo Oil Marketing Co., Ltd. It also has a trading function through COSMO OIL INTERNATIONAL PTE. LTD., based in Singapore, forming an integrated value chain from crude oil development to import, refining, storage, cargo handling, and transportation. This core business accounts for approximately 86% of sales to external customers of the Group.
Recent Overview
Sales decreased due to lower crude oil prices, but segment profit increased year on year due to improved inventory valuation.
In the Petroleum Business for FY2026 (ending March 2026), sales (total including intra-segment) decreased by ¥121,292 million year on year to ¥2,385,565 million, reflecting the impact of crude oil price fluctuations. On the other hand, segment profit increased by ¥14,455 million year on year to ¥76,262 million. Segment profit excluding the impact of inventory valuation, which reflects underlying earnings power, was ¥92,800 million, remaining almost flat year on year, indicating stable fundamental earnings capacity. Note that Yokkaichi Kasumi Power Co., Ltd. was absorbed into Cosmo Oil Co., Ltd. and excluded from the scope of consolidation.
Key Products
Growth Drivers
- Maintaining high refinery utilization: promoting DX enhancement through expanded introduction of APM (Asset Performance Management) and digital twin construction to improve operating rates
- Establishing a short position through fuel oil supply to Kygnus Sekiyu K.K., achieving stable high utilization of refineries
- Sophistication of fuel oil sales through marketing science leveraging the Car Life Square App customer base (over 9 million cumulative downloads)
- Segment profit on an underlying basis excluding inventory valuation impact was ¥92,800 million, roughly flat year on year (excluding the inventory impact of crude oil price fluctuations, earnings power is stable)
- Expansion into New areas, including the start of Japan's first large-scale production of SAF (Sustainable Aviation Fuel)
Risks
- Crude oil price fluctuation risk: inventory valuation losses occur when crude oil prices decline, significantly reducing segment profit (the difference from the figure excluding inventory valuation impact indicates the swing in earnings)
- Structural decline in domestic demand for petroleum products: fuel oil demand is on a gradual downward trend due to energy conservation and EV adoption
- Foreign exchange fluctuation risk: crude oil procurement costs are denominated in US dollars, and a weaker yen increases costs (the yen weakened to the ¥159 level at the end of the fiscal year under review)
- Refinery trouble risk: unplanned shutdowns reducing utilization rates directly impact earnings
- Geopolitical risk: instability in the Middle East (such as a blockade of the Strait of Hormuz) could raise crude oil procurement costs and disrupt supply. During the fiscal year, crude oil prices spiked to around $121 per barrel at one point
Last updated: June 24, 2026